Chase Admits Overcharging Troops on Mortgages, Improperly Foreclosing

JPMorgan Chase acknowledged this week that it overcharged some 4,000 military families for their mortgages and wrongfully foreclosed on at least 14. It's not clear how much the mistakes have cost these families, but the bank told NBC News that it’s collectively refunding about $2 million to those affected. It has also promised to restore the homes that were lost.

The mistakes came to light after a Marine captain and his wife were overcharged, fought debt collection attempts for years, and finally filed suit. From NBC:

The Rowles' records show that while they kept making payments on their mortgage at 6 percent, the bank wrongly had been charging them at rates above 9 or 10 percent. They kept calling the bank to explain there had been a huge mistake but say no one would listen. They say they kept being harassed for money they did not owe.

A Chase spokeswoman said the bank is “deeply appreciative of those who fight to protect our country” and feels “particularly badly about the mistakes we made here.” (Read the bank’s full statement.)

The Rowles family is hardly the first military family to have to fight against the banks and their handling of mortgages. Other lenders and servicers, including Aurora Loan Services and OneWest Bank, have also made headlines in the past by foreclosing on military families or revoking offers of loan modifications.

Bloomberg noted in 2008 that in military towns, foreclosures were increasing at a rate almost four times the national average, despite the special protections given to military families.

48 comments

Oops! Chase did it again. Gee, what a surprise - Chase did something illegal and actually got caught red-handed. I don’t believe for one New York second this was a “mistake on Chase’s part.” This is a CLEAR example of how Dimon chooses to operate Chase.

They “feel particularly badly about these mistakes?” Really??? Only because they got caught. I can guarantee there’s more to come in terms of fraudelent practices from Chase. What goes around comes around, Jamie. Better watch out because here it comes.

I’d also like to add that it’s disgraceful this happened to the families of those who are protecting our country. Once again, nice job, Chase. They’ve proven the incompetence and poor training (more like sheer ignorance) of the employees, which comes from the top.

Ok, Here is the reality of this:
This is just the tip of the iceberg, this is only what Chase is admitting to and I bet is much worse if Chase is admitting to 4000 families its probably 40,000 families( Chase never admits wrong doing unless is a lot worse) and what about all the thousands and thousand of families that are none military but never come to light?
But hey ! were is our government? were is the AG? They AG is never to be found, were are all the institutions that suppose to protect the people? Where is the VA? This abuses are growing, getting worse and nobody can do anything about it, They lie, they fraud, they falsify docs, they falsify notary stamps, signatures, they overcharge people, they Fraudclouse, they cheat investors, the cheat the American people, the country, and they are untouchable, were is the president on this? I never ever hearing talking about this abuses his HAMP program is abused by the Banks in their favor every day, see report on at Parallelforeclosure.com on 01- 5 2011
I see websites like Propublica, 4closurefraud, foreclosurehamlet, Parallelforeclosure, shows like Dylan Ratigan, movies like “Inside Job” Books like 13 Bankers and The Great American Stick up, congressional hearings, but nothing happens, all I hear is even worse and more outrages cases by the day
What a shame!

Our Supreme Court has truly betrayed the American people; while the sitting judges did not first bestow “humanhood” upon corporations, they have sought to do nothing but strengthen that specious concept.

Oh, acmod - trust me - this IS the tip of the iceberg for Chase. I can say (as can many others) there’s A LOT more wrong-doing compliments of Chase. They even wanted me to sign their CHAMP (seriously - Chase’s version of a HAMP, which is more like a CHUMP) which contained false information THEY wrote into it, wanted me to have it notarized, then “put a little note on it letting them know which statements were false. ” Just wait and see.

How unfortunately for these military families. If these banks can do this to the people serving THEIR country, we the little guy do not stand a chance. Maybe now that they have screwed the most deserving homeowners in the United States The Government will look at this as a whole and stop these criminals from stealing another home.1.2 million homeowners in 2010 can not be deadbeats .Someone has to take stop this insanity. @JS your posting was brilliant and I think it needs to be published!!!

AdriAnne, tomorrow we’ll reach the 5 million foreclosures in the US, multiply that by 4 persons per household = 20,000,000 people has lost their homes, and is like the energizer rabbi,t foreclosures are going….and going…and going…..

Parallel Foreclosure, I agree and an estimate of foreclosure mode actually turn in to foreclosure?
But in any case thanks to the Parallel Foreclosures perpetrated by banks we are at 5 million foreclosures total right if we also include the PARALLEL FORECLOSURES?

I have ranted in emails to the AG, SEC, RNC and DNC calling for prosecutions…without consequences, they can make it without my investment funds. Put your money where your mouth is and take your money from them. Oh, you can’t can you, because the lawmakers made it so difficult to have anything but mutual funds in your retirement fund….and you have to have those costly audits turned in to the IRS, because you can’t be trusted to act wisely with your own money that you earned. Isn’t that incredible? How did that happen? Banks in the pockets of our legislators, that’s how…remember Phil Gramm? Put Glass Stegall back and stop playing pocket pool all you corrupt law makers in Washington D.C.! I was insulted to see that the Leather Lizard at Countrywide was fined the exact amount he received as a bonus when BOA bailed them out…WITH OUR TAX DOLLARS, present, future and our childrens’ future. The dredge of the industry took a noogie for the Big Shot Club. They think we’re too busy out here with our noses to the grind stone to know what they are doing. But its not like that anymore. Hey! We are watching all of you and taking notes. We’ll clean the plow till we get some results…count on it. He better be the first of many prosecutions and investigations…I want to see it go from Gramm (teach those who legislate to be accountable), all the way up to Hank Paulson, as he was in the thick of the CDO Pyramid scheme before he landed at the Fed. I hope to see an audit on the Fed…and Mr. Paul might be just crazy enough to getter done! Sooner than later is all I hope for…no peace in my heart or mind until it does. I feel for all who have had to live with the misery of losing their jobs, homes and upheaval of the lives of their families. It is disgraceful to have our institutions treat those who serve our country in this manner…but if you look back, our government has treated them horribly throughout our history. It’s just not in our scrubbed up history text books. The powerful are corrupt, but we outnumber them. Stay on them ProPublica… and all my fellow readers. The majority of us are good, hard-working Americans, with decent hearts and minds, raising our children and being productive while earning a living to pay our taxes. If we stay at them, we will wear down the veneer, and the cards will fall. We have the power if we stay focused. Let’s do it…take our country back from the defiling, morally bankrupt thieves. Write your congressmen and senators and demand prosecutions/investigations. Name names…and keep them on the hot seat.

Chase, Citimortgage, Bank of America, Wells Fargo, etc.—they are all the SAME!!!

Hello politicians—why has there not been tough legislation that helps all consumers, but especially the men and women serving our country from this type of abuse and incompetence?!?

In my own experience in getting a loan mod through one of the above, I talked to mostly people who sounded like a) they could care less, b) they dropped out of school in the 8th grade, and c) it was apparent there was no monitoring of how issues were being handled or how people were being dealt with (rudely!).

I will never forget this experience. I try to pay cash as much as I can now. Stick it to the banks. Don’t make it easy for them. They trip over themselves trying to lend to people with money and ignore those who need it, but have an excellent credit history! What’s the point of excellent credit if you can’t get a break or a loan?!? Check out: http://www.opensecrets.org and see where the money in politics go—you’ll be surprised. Former Senator Chris Dodd (D-CT) took the most “campaign contributions” from Fannie/Freddie while the LEADER of the banking committee! What’s wrong with this picture? CONFLICT OF INTEREST ANYONE?!?

@Everyone - I realize that you, like me, have a cyber in-basket that runneth over with stuff to look at and links to follow up on but the if you haven’t followed up on the link I posted at 11:03 a.m. today you might be interested, hopefully, in what it reveals about why we are not getting any help for anyone save the crooks who are foreclosing.

@PF - I said the same thing many months ago when I was verbally assaulted for daring to criticize Barrack Obama. I was called a racist and everything I did was blamed on my hatred of Obama because he is a black man.

I do not hate barrack Obama because he is a black man. I do hate him (I’m being honest, not politically or religiously correct) because he is destroying America.

I guess I have a very vivid imagination that helps translate my thoughts about what I see happening into something easier to explain.

It feels like the United States is a board game that was going along nicely enough, a few rough spots but mostly functional anyway. Then obama was elected and he immediately started to work eroding the constitution. He boldly and blatantly said the constitution was flawed which shocked me since he swore to uphold it. But in the beginning his actions were helter skelter here and there and just on their own didn’t seem that big a deal and people kept cheering “Obama!” And they kept calling me a racist and still do today. But the dents Obama made in the constitution are starting to come together and the slight tipping of the game has now become a violent tilting. The degree of the tilt is so strong it feels hard to hold on to my place, our place here in the game board. I feel we are all in danger of slipping off. Amazingly enough there are still diehards among us who persist in viewing Obama as the massiah rather than the assassin he is. He has assassinated America in broad daylight in front of God and all of us. Our way of life has turned upside down.

I am not a racist and I resent being called one. And I have said and I still feel that voting for Obama or approving what Obama does just because he is a black man and “it’s time” that America elects a black man to its highest office. I’m not opposed to a black man as president but I am opposed to Barrack Obama because he is out of control and no one seems inclined to or know how to stop him.

Anne, you are probably a PUMA, as am I. We know Hillary Clinton would have handled the foreclosure issue in her first six months in office.

The Progressives in the democratic party are every bit as insane as the ultra conservatives are in the Republican party.

Both parties are constantly under attack by their “ultra’s”, the irony is that while the relatively liberal media happily paints the ultra republicans as being insane, they have actually embraced the ultra’s in the democratic party as their own.

NOTHING WILL CHANGE until A NEW NEWS channel appears that does not favor either Obama, or the conservatives, but instead represents the huge moderates out there, the type that would have voted HIllary Clinton into office, if Hillary Clinton had not been blindsided by Barack Obama’s suspiciously high donation intake that had no accountability attached to it, and by the media that lapped up all of the advertising money Obama’s camp had to offer, and who then got to see racist america elect an african american president, Hillary Clinton should have been president.

As far as Barack Obama, Resume not required, batteries not included, but he did give an ok speech at the 2004 democratic convention.

Progressives are not your friend, they tend to be either very young and naive, or middle aged but making close to six figures and ready to sell out anybody who doesn’t think their way, and they have control of the media.

I clamor for another moderate news channel that would have fairly represented Hillary Clinton in 2008.

What I am, and what we all should be, is someone who knows what’s fair and do it.

These politicians and bankers know what they are doing is not fair. Oh yeah, they have some song and dance that they say justifies it, but in their heart when they lay down at night and all is quiet, they know they are wrong.

I would like just once in my lifetime to have a candidate I could get excited about instead of selecting one that I think is the least harmful.

I don’t think I am an anything. I just believe what seems right. I’m not republican or democrat or right or left. Each issue is a separate one. I feel disappointed every time I overhear some lady saying how she voted a straight whatever ticket, like that is some kind of ticket to heaven or a front seat in the plane at least.

She doesn’t have the slightest idea about who is running under that straight whatever, she just blindly places her trust in whatever party.

That is a lazy way of deciding who to vote for. DON’T BOTHER seeing what the person is about and believes in for heaven sake, I mean come on.

She talks a good game if she could WOULD follow through, thumbs up for actually thinking about where this is going. Despite Obama’s promise/commitment to transparency, it hasn’t materialized. I like her take on not handing over a blank check. Still ... what they say and what they do, I’m very cynical of almost everyone.

The person who has really impressed me both intellectually and remarkable integrity is Elizabeth Warren. She seems to have a real understanding and empathy for the struggling masses. She also seems very intuitive and like someone it would be hard to fleece. She’s nobody’s fool.

Anne-You are dead on the money with your impression of Elizabeth Warren. I have read a considerable amount concerning her background, qualifications and ideas. She is an amazing woman. Empathy, as you mentioned, is definitely one of her strong suites. She comes from a no nonsense, roll up your sleeves and get it done family. I will lose my last ray of hope for this administration if they end up keeping her on the sidelines and not allow her to lead the upcoming Consumer Financial Protection Bureau. It would truly be the last straw for me. She is way too qualified, fair and unbiased for it not to happen.

Im afraid the biggest problem is John Q. Public. For too many years all the little MOUSE people have been content with their tight little worlds, anything outside what they can see hear and taste, or touch with their little whiskers is somebody elses problem, doesn’t affect ME. Beyond Things are fearful, don’t venture out there, don’t be curious, just stay here where it’s safe. They didn’t think anything outside their limited little sphere could affect them. As long as they focus on little mouse families, going to work, paying their bills and are quietly uninvolved in protest or defending others, nothing would threaten THEM. Without this busy blind fearful complacency, the THE BIG BAD WOLVES could not have usurped such power and become a threat to ALL the tight little worlds. Until the little mice quit breeding and procreating more little mice, there is no chance of survival. Sheer numbers, choosing silent anonimity, are just creating more food for the predators. At some point the mice are going to have to rise up in unison and ROAR. Otherwise the chickenhawks will have their feast.

Can you imagine the chaos that would be created if for just one day, ALL the little mouse people just stood in place and said NO MORE….. WE HAVE HAD… ENOUGH .....OF THIS.
Standing united makes it harder to pick off a few examples to hold up…... for fear training.
Consider for just a moment,.... the corporate humans, and the chickenhawks DEPEND on all those little mice, ....they can’t eat the wealth they fabricate on paper. ......What if the mice were suddenly standing in defiance, refusing to be the prey? Without the mice, THEY would have nothing.

@Me…. I have thought the same kind of thoughts about what/who is holding us back. I have thought what it will take to get us out of this.

Whenever I think of that I think it will take an act of faith and courage and hope.

I remember the people at Tiananmen Square. I remember that one small but very brave person who had my admiration that day standing in the way of one huge tank. I wonder what happened to him, but do I really want to know?

@Roy, Re: Elizabeth Warren. She seems like such an an anomaly. It’s like those movies you hear about where somehow someone screwed up and left something out of time get in the movie. Like I heard once that, I think it was Ben Hur, one of the thousands of actors maybe one of the gladiators had a watch on.

She seems out of place in Obama World. And like why would their two circles ever come together? I can find little if anything to like or admire about Obama, not that I have not tried. I have watched videos of him where he seems almost normal, laughing at some dumb joke he made. But mostly I think that the surface of Obama is way different from what’s inside.

It would be such a relief to believe that Obama isn’t the enemy he appears to be. But fairytales are for kids and anyway some of them were pretty scary, yannow?

“An anomaly is any occurrence or object that is strange, unusual, or unique. It can also mean a discrepancy or deviation from an established rule, trend, or pattern.” Wikipedia, of course

“And today, I’m proud to announce that for the first time ever, supporting the well-being of our military families will be a priority not just for the Department of Defense and the Department of Veterans Affairs, but all across the federal government….Sixteen members of my Cabinet have committed their departments and agencies to making military families one of their highest priorities.

“We’re focusing on four areas —- the things you said matter most to you, whether you’re Army, Navy, Air Force, Marine or Coast Guard—active Guard or Reserve, a veteran or a member of a family of the fallen. We didn’t wait for today to launch these efforts. Many of these efforts have already been underway….”

“...First, we are putting new emphasis on the quality of life for our military families.The Departments of Defense and Health and Human Services, for example, have joined forces to improve community mental health services and prevent suicides.”

“A new office in the Treasury Department is working to protect military families from abusive practices like predatory lending. It turns out that military families are more subject to some of these financial scams than just about any other group.”

“The Agricultural Department is expanding its support for families in rural areas. A disproportionate number of our military families come from rural areas or are stationed in rural communities.”

“The Interior Department—we use our national parks to help our wounded warriors recover.”

“And we are going to remain relentless—not just at VA, but at HUD and HHS and across the government -— in our fight to end homelessness among our veterans. We have to have zero tolerance for homelessness among our veterans.”

“Second, we’re putting a new focus on the education and development of our military children, most of whom go to public schools. So for the first time ever, the Department of Education will make military families a priority for some of its grant programs. And that’s going to give states and communities new incentives to address the unique needs of military children.”

“The Interior Department, which is already one of the largest federal employers of young people, will create more opportunities, like summer jobs, for young people from military families. And today, we are renewing our call for every state to adopt the Interstate Compact, which makes it easier for military children to transfer between schools and succeed in the classroom.”

“Third, we’re redoubling our efforts to help military spouses pursue their educations and careers. As Michelle said, we’ve brought in the departments of Labor and Commerce and the Small Business Administration. We’re going to help spouses get that degree, find that job, or start that new business. We want every company in America to know our military spouses and veterans have the skills and the dedication, and our nation is more competitive when we tap their incredible talents.”

“And finally, we’re going to keep increasing childcare for our military moms and dads with young children. This is not just a job for the Department of Defense. As Michelle said, the departments of Education, Health and Human Services, and Agriculture are now helping, too. And working together, we believe we can find new childcare options for tens of thousands of military children.”

“So these are just some of the nearly 50 specific commitments that my administration is making today. In other words, we’re not simply reaffirming our responsibility to our military families, we are upping our game. In fact, these 16 members of my Cabinet have signed their name to this report, pledging personally to see this through.”

“I want every service member who’s deployed to know that when you’re over there taking care of the country that you love, your country is back here taking care of the families that you love. I want every military wife and husband to know that we’re going to help you keep your family strong and secure. I want every military kid to know that we’re going to be there for you, too, to help you grow and to live your dreams.”

“I want our Gold Star families to know that this nation will never forget and will always honor the supreme sacrifice that your family has made to our nation.”

“And I want every single American to remember that as the beneficiaries of their service, each of us has an obligation —- a sacred duty —- to care for those who have “borne the battle.”

“The proposal, which would affect more than 150,000 veterans, has long been on a list of possible budget options prepared by the Congressional Budget Office, which describes the option as a way to “eliminate duplicate payment of public compensation for a single disability. The average SSDI benefit is $12,800 a year, according to CBO.”

@CreoleC - been thinking, reread your comments. I guess you don’t understand sarcasm or irony or allegory. A “sweet story” was what I called it because that’s all it is. Nothing will come of his promises, its just to keep us quiet while he does what he wants while we believe he’s on the way too help us. It’s EASY to promise things. He promised things when he was campaigning that are now obviously not going to happen.

If Barack Hussein Obama wasn’t eligible to serve in office as senator or as President, don’t you think the Secret Service would have discovered that fact long ago? So, are they in on this grand conspiracy to destroy America as well?

If you’re speaking about the Patriot Act, well from what I understand that was enacted under the previous administration. Plenty of blame to pass around on that because if I recall correctly Russ Feingold was the ONLY individual who voted against it. By the way, it’s coming up for an extension soon…

As to the thugs who were threatening voters, I imagine you’re talking about the 2-3 New Black Panther Party members standing outside of a polling place; and one was armed with a stick expressing violent rhetoric? From what I saw on a video of the incident, they were not preventing people from accessing the place. Neighborhood resident came and went…after voting…and the aforementioned individuals left and/or moved away from the entrance when instructed. And for the record, most people just ignored them!

In a similar incident, “After a rally in Fayetteville, North Carolina, supporters of Barack Obama went to a nearby early voting center, where they were heckled and harassed by a group of protesters as they went in to vote. Nearly all of the early voters were black, and nearly all of the protesters were white.”http://projectvote.org/voter-intimidation.html
Again, the voters just ignored them!

“A U.S. Civil Rights Commission investigation concluded that, of nearly 180,000 votes discarded in Florida in the 2000 election as unreadable, a shocking 54 percent were cast by black voters, though they make up only a tenth of the electorate. In Florida, an African American is 900 percent more likely to have his or her vote invalidated than a white voter. In New Mexico, a Hispanic voter is 500 percent more likely than a white voter to have her or his ballot lost to spoilage….Unfortunately, Florida and New Mexico are typical. Nationwide data gathered by Harvard Law School Civil Rights Project indicate that, of the 2 million ballots spoiled in a typical presidential election, about half are cast by minority voters.”

Were these events followed by riots, looting, and burning? I’ll wait…

As to your claim that the President has been a “destructive, divisive force,” please provide evidence to support your statement.

As to people insinuating that you are a racist, I can’t comment on that one way or the other because I don’t know you on a personal level.

Moving right along, the health care reform bill that the President “pushed through by bribery” may actually enable you to get help with paying the cost of your deductible for your medication. You may want to check out HealthCare.gov to see if there are resources available in your area OR read the material at http://www.whitehouse.gov/healthreform/healthcare-overview#healthcare-menu to see the benefits that went into effect on September 23, 2010.

@creolechild-I assume you read the article pertaining to what HAS happened concerning our men and women serving our country, putting themselves in harms way and prepared to give the ultimate sacrifice (as my favorite Uncle did in Korea). Our commander-in-chief cannot even make sure they are not taken advantage of by the banks. He put together a program to do so, but what has come of it? The banks are laughing behind his back as they fleece hardworking, tax paying and now citizens who are willing to die for our freedoms. Maybe they can all get in line and spit on them at the airport upon their return (like they did to my cousin when he returned home from Vietnam). Why put in place such programs etc. if they are not to be enforced? Have you also read the article in here concerning the care for our service men and women with head trauma? For the record…I am a white man. My family (myself included) doesn’t have a prejudiced bone in our bodies. My Sister’s partner is black. My best friends from high school are black. I not only voted for Mr. Obama, I campaigned relentlessly for him. Why? Because I believed what he said and stood for. Now? I am heartbroken and disappointed.

This is a serious problem. I am grateful to the actions of President Obama which are making it easier to clean up credit fraud. Holly Petraeus was recently appointed by Elizabeth Warren to clean up issues just like this. The President does not support credit abuse by banks, he works tirelessly to clean up the messes he inherited.
Read about Petraeus’ appointment here

Here is my take!!! I am a black woman single mom of one, no child support Ever, no public aid benefits, employed with the same company for 20 yrs ,own my home for 14 yrs not with an arm but a fixed loan. Lost my fulltime employment in 2007 but continued to make my payments to BofA fell behind 3 months ago after explaining that my interest rate is at 7.65% $900.00 of my mortgage pymt is interest alone!! I am still fighting the good fight!! With that being said I feel Obama needs to look at the issues at hand right now and that is this foreclosure S*** and job creation. I do not for 1 min think Obama does not know the banks are not only making an fool out of us but also making him look like a jacka**. he handed them money for them to help us and they helped themselves. The foreclosure issue seems to be the issue he does not seem to want to touch!! I am angry and sadden that he is not more active with this. Healthcare is important but losing a home to fraud by the banks he helped is CRIMINAL!!! I wish there was a way to start sending the injustices directly to the White House!

@AdriAnne, glad to hear you are “still fighting the good fight”. YOU KNOW YOU CAN WRITE OR CALL MYSELF OR mICHAEL AT ANYTIME…WITH ANY QUESTION. i KNOW IT IS very HARD FOR YOU, THAT YOU HAVE LIMITED TIME WITH WORK AND RAISING YOUR DAUGHTER. There are new tools that HUD qualified counselors are going to have as of tomorrow Feb. 1st. You have been in this situation a very long time like myself. At this time I would suggest calling either HSC (HAMP Solution Center) or MHA Help and having your case escalated…one reason being that they will now be able to record the conversations of sevicers. No more being able to lie or mislead by the servicers as a result. As I have told you before, you are a strong woman, you have worked too hard for what is YOURS. PLEASE know I am an e-mail or call away. GOD bless all!!

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